Uber Reports First Operating Profit; Meta May Introduce Ad Opt-In for European Users

by Hannah Dillon, Grace Dillon on 3rd Aug 2023 in News

In today's ExchangeWire news digest: Uber makes an operating profit for the first time in the company's history; Meta may introduce ad opt-in for Instagram users in Europe; and social media drives sales for a quarter of UK small businesses.

Uber makes operating profit for the first time

Ride-hailing giant Uber has made its first operating profit, reporting on Tuesday (1st August) that it had made USD$326m (~£254m) in Q2. The achievement marks a turnaround from the USD$713m (~£557m) loss the company reported during the same period in 2022.

Having reported successive losses for years, Uber’s fortunes have improved thanks to post-lockdown demand for driving services, and the company has seen success with its food delivery unit, Uber Eats. The firm now estimates that Q3 EBITDA revenue could exceed USD$1bn (~£781m).

Meta may implement ad opt-in in Europe

Instagram users in Europe may soon be asked for their permission to be served highly targeted ads. Parent-company Meta has proposed making changes to its systems to seek users’ active consent to be shown tailored advertisements based on their activity (such as what types of posts they engage with or videos they watch).

The move, which follows challenges from European regulators over Meta’s use of behavioural advertising, would mean that only users who opt-in will receive personalised ads. The change could substantially reduce Meta’s ability to offer targeted advertising, posing a threat to the company's revenue.

Social media drives sales for 28% of UK small businesses

More than one in four (28%) small businesses in the UK derive the majority of their sales via social media platforms, according to a study by BT. The research, which analysed over 500 such outfits, found that 25% use organic social media content and 22% use paid posts to generate purchases.

Three in ten (30%) of those surveyed said that Facebook is their first port of call for securing sales, while Instagram is the top site for 18% of small business owners. However, the study also found that many entrepreneurs lack confidence in navigating social media, particularly in the face of changing privacy regulation, and that 58% said that they would benefit from upskilling.

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